Seedfonds Bayern extended
Your product has passed the Proof of Technics. Your company is at the end of the seed phase and has not been on the market for longer than 24 months. Your goal is to enter the start-up phase in order to achieve the “proof of market” with your technology.
The Seedfonds Bayern extended provides Bavarian technology companies with up to EUR 500.000 in equity capital in the transition phase from 9 to 12 months to bridge the gap between the seed phase and the start-up phase, if no private investors are ready to start.
In a subsequent financing round, participations from other investors (in particular venture capital companies, business angels) are to be acquired.
High-tech companies that are still in the seed phase can be financed. The target group also includes young technology companies, which are adequately financed with the participation of Seedfonds Bayern.
The minimum content requirements for the corporate concept are:
- Motivated, efficient team of founders
- “Proof of technics” shown
- Technology with sustainable unique selling points or competitive advantages
- Product that represents an actual problem solving essential for the customer
- Growth market with significant market volume
- Sustainable, scalable business modelAfter completion of the project, the requirements for raising additional equity capital are reached or the company is sufficiently funded as a whole with the participation of Seedfonds Bayern
- Exit scenario exists
- Company according to Article 22 of Commission Regulation (EU) No 651/2014 of 17 June 2014 headquarters or major business premises in Bavaria
- Legal form of a German corporation
- Integration of know-how carriers in the management
- More than 50% of the company’s shares are owned by the know-how carriers before the financing is concluded
- The commencement of business activities was at least one year ago at the time of application; however, the company is active for a maximum of 24 months
- Overall financing of the project secured
- Fulfillment of the EU criteria for micro and small businesses:
- Company has no more than 50 employees
- Annual sales or annual balance sheet total of up to EUR 10 million
- Other companies own less than 25% of the share capital or the above criteria are also met when these other companies are included
- Fulfillment of the EU criteria for aid for start-ups according to Article 22 of Commission Regulation (EU) No. 651/2014 of June 17, 2014.
The participation of the Seedfonds Bayern Extended takes place primarily in the form of an open participation in combination with a subordinated loan. After acquiring the shares as part of a capital increase, Seedfonds Bayern Extended holds a 10% stake in the company. The Seedfonds Bayern Extended declares a subordination in advance to the loan and interest claims.
- Amount of participation: The Seedfonds Bayern participates in the first financing round of up to EUR 500.000 in the company; a total of max. EUR 750,000 possible.
- Term: The term of the subordinated loans is seven years. The payment is linked to the achievement of milestones. With a typically silent participation, a term of up to max. 31.12.2030 is possible.
- Participation fee: The interest on the subordinated loan is 10% p. a. An interest deferral for the first two years is possible.
- Conversion right: In further financing rounds, the subordinated loan or – depending on the situation in the individual case – the silent participation and the accrued interest/charges have a conversion right into an open participation to evaluate the respective financing round.
- Own contribution/sideinvestment: The founding shareholders do not have to assume any personal liability.
As an alternative to this, the open participation in the company valuation of other equity investors can be concluded.
Silent participations with subordinate agreements are also possible.
The Seedfonds Bayern and the Seedfonds Bayern Extended recommend working with an experienced expert. This early collaboration with an experienced expert is important to us so that the often very dynamic company development is accompanied and supported. For this, the expert receives individually agreed remuneration within a planned overall framework, which the company also pays from the funds invested by the Seedfonds Bayern.
The tasks of the expert include the following points
- Initial advice for interested founders from the high-tech environment on the Seedfonds Bayern or High-Tech Gründerfonds
- Comprehensive support in the implementation of the early phase project
- Technical and business advice/support and controlling of project implementation
- Provision of its contact network, in particular in relation to venture capital
- Active support in the transition to the follow-up financing
- Briefing the Seedfonds Bayern about the economic situation of the participant/plausibility check of the company reports